Retailer says one-time gain doesn’t affect net income

In a vaguely worded press release, the home of the Blue Light Special said that its accountants O.K.’d a gain on repurchasing obligated mandatorily redeemable trust convertible preferred securities. In other words, Kmart reduced the number of outstanding shares.

Kmart (KM) said that the gain would not affect the $22 million net income recorded for the quarter, but would be reflected in the EPS. That’s because there’s no new money actually being added to income.

But when the number of shares outstanding is reduced, it automatically increases the income to the shareholders left. It’s as if there are fewer takers for the pie so everyone gets a bigger piece.

A Kmart official did not return a phone call to comment. The company said it filed the revision with the Securities and Exchange Commission.

The news came out after the market’s close. Kmart shares slipped 1/8, or ¼ percent, to 8 ½.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.